Do you know why the Recruitment Process Outsourcing (RPO) market is estimated to grow at a CAGR of 15.2% between 2022 and 2027? This forecasted increase in the RPO market size by $7.6B is driven by the benefit of reduced costs for businesses of all sizes.
The financial crisis led to a wave of changes in how businesses manage and reassess their hiring procedures and associated costs. Cost-effectiveness is a top concern for businesses in all sectors and industries in this complex economic environment. The recruitment industry is rapidly evolving, and manual hiring is being replaced by automation and data-driven hiring technology. Recruiters who want to excel are adopting new-age hiring technology. Hiring in a candidate-driven market is challenging for recruiters, and there is an urgent need to revamp hiring procedures and enlist professional assistance to increase hiring effectiveness overall. Thankfully, there are ways to reduce costs and increase business value through Recruitment Process Outsourcing (RPO) to experienced vendors. Organizations can streamline their recruiting tactics while providing high-quality hires in a well-timed way. In Vaco’s recent Trends in Transformation report—which surveyed 164 business leaders—31% of respondents said increasing outsourcing or shared services was a key focus for cutting costs within their organizations in 2022.
From simplifying the application process to mitigating risk associated with hiring decisions and investment in training, onboarding, and recruitment tools, RPO helps you maximize the efficiency of recruitment efforts so that a company can focus on other strategic areas of the business. This blog explores five key ways RPO can help businesses save money while driving growth for the organization.
1. Effective Hiring Framework
An effective RPO framework can help a company reduce costs and drive growth by streamlining the recruitment process, improving the quality of hires, and providing access to a larger pool of candidates. One of the main ways an RPO framework can reduce costs is by improving the efficiency of the recruitment process. An RPO provider can take on tasks such as screening resumes, scheduling interviews, and conducting background checks, freeing up the company’s internal resources to focus on more strategic activities. By automating and optimizing these tasks, an RPO provider can also help reduce the time and money required to fill open positions.
SkyQuest Survey reveals that 60% of companies opt for RPO services to hire quality candidates and reduce hiring time.
RPO providers often have a wider reach than a company’s internal recruitment team, as they can leverage their networks, databases, and advertising channels to find qualified candidates. Additionally, RPO providers typically have specialized expertise in recruiting for specific industries or roles, which can help them identify the best candidates for a company’s open positions.
At iQuasar, we have developed a robust recruitment process called the iQHire© process that helps our customers to streamline their recruitment activities, strategy, and communication methods.
2. Reduced Hiring, Onboarding, and Training Costs
The process of hiring, onboarding, and training new recruiters can be challenging for a variety of reasons. This includes finding the right candidate, the significant time and resources needed for onboarding, the challenge of figuring out the best training methods, the challenge of finding the right trainers and training materials, and disruptions in productivity due to time-consuming activities. It can be difficult to handle these challenges well and requires substantial resource investment. Companies looking to fill vacant positions can use RPO as a cost-effective solution.
According to Glassdoor, the average company in the United States spends about $4,000 to hire a new employee, taking up to 52 days to fill a position. Companies can save costs on hiring, onboarding, and training new workers by outsourcing their recruitment needs to a third-party vendor. The workload, stress, and costs of the internal HR team members can also be reduced, allowing them to focus on other crucial HR-related responsibilities.
RPO service providers also play a huge role in reducing training costs. Onboarding new recruiters and waiting for them to become familiar with the methods and tools required to locate top talent in the market is very challenging and time-consuming. By outsourcing their recruiting efforts, businesses can lower training expenses while ensuring that recruiters are skilled and educated about the current industry standards and best practices. By employing the expertise of staffing firms, businesses can successfully hire top employees while also saving money.
3. No Investment in Recruitment Tech Stack
Technology has smitten everything we do in today’s world, and recruitment is no different. Talent acquisition technology stacks are built upon the foundational Applicant Tracking Systems (ATS). On top of that, organizations can attach sourcing tech, assessments, interview systems, recruitment marketing platforms, and onboarding tools. A recruitment tech stack can help an organization source, attract and employ fully vetted and qualified high-quality candidates. This relieves pressure on recruiters, saving time and money for businesses. Once an organization outsources recruitment, it does not need to invest in developing infrastructure and acquiring a recruitment tech stack. The recruitment partner provides the infrastructure, the required tech stack, and the expertise and skills required to make the most of the recruitment tools and technology. Tim Sackett, SHRM-SCP, an industry veteran, thought leader, and president of HRU Technical Resources, an engineering and design staffing firm based in Lansing, Mich, says, “If you suck at recruiting, having great recruiting technology will only allow you to suck much faster.”
The recruitment partner uses the tech stack to provide data and intel on hiring trends across the globe. With expertise, it can help an organization adjust hiring timelines, improve interview strategies, revisit salary ranges, and get a comprehensive understanding of the disruptions shaping the hiring landscape, ultimately resulting in cost savings.
4. Increased Focus on Business Development
According to Deloitte’s 2021 global shared services and outsourcing report, companies opt to outsource to drive their business value by 73%.
Outsourcing recruitment efforts can help organizations focus on the long-term strategies of their core business to enable growth, innovation, and generate revenue. It helps internal teams focus more on business development activities while the outsourcing partner builds the teams organizations need to succeed. A trusted recruitment partner allows organizations to do their best without worrying about recruitment strategies, tools, or finding fully vetted and qualified candidates.
Our value proposition at iQuasar states, “You focus on your Business Development, and iQuasar manages your Talent Acquisition.”
5. Round-the-Clock Work
One of the benefits of outsourcing recruitment needs is being able to streamline several business processes at once. It enables one to work with a qualified team of professionals already well-versed in all the tasks that need to be performed, removing a huge chunk of time-consuming tasks from the internal structure. Working in different time zones provides a great round-the-clock work advantage. If you are a company that operates in the US and have outsourced your staffing needs to a company operating in a location with a 12-hour time zone difference, the task that has been assigned will already be completed by the time you wake up!
Round-the-clock work has the following benefits:
- Increased productivity
- Faster turnaround time
- More focus on key business operations
We at iQuasar have also been successful by working in the same model and have a 97% customer satisfaction rating, independently verified by Dun and Bradstreet.
It’s imperative to know that, like all good relationships, a company’s partnership with a recruitment outsourcing firm is based on trust and value creation. An outsourcing partner should do more than fill open roles for an organization; they should act as advisors and experts on processes, strategies, and market trends.
iQuasar offers Cleared Recruitment Services to government contractors for agencies like DoD, DOE, and DHS and also caters to open positions in CONUS and OCONUS. With 18+ years of industry experience coupled with the latest tools, technologies, established network, and vast pool of candidates, iQuasar acts as a one-stop solution to address the unique challenges of the cleared community. iQuasar provides similar services to companies that do not have security clearance needs.
To deliver high-quality recruitment services across the United States, iQuasar adheres to standards modeled to ISO-9001 quality standards. With decades of experience in Recruitment Process Outsourcing, we source, recruit, and hire candidates for you. We are 60% cost-effective as compared to our competitors. A dedicated iQuasar recruiter works as an extension of your team to find the right candidates with the relevant skills for a project, contract, or RFP response. We also provide traditional staffing and full-time hiring services.
Deciding to outsource might be simple, but choosing the right partner for your business can be the hardest part of the overall process. At iQuasar, we offer quality resources to help ease your fears about partnering with an outside vendor. While maintaining the highest standards of ethics, quality, and integrity, we become your trusted partners and treat your success as our success.